How do Michigan Medicaid asset limits differ for nursing home eligibility versus home- and community-based waivers in 2026?
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Executive summary
Michigan raised the long-term care asset threshold above the old $2,000 floor: for nursing‑home eligibility and the MI Choice waiver the recent policy changes set single-person countable asset limits roughly in the $9,000–$9,660 range (multiple sources cite $9,660 and similar figures) while longstanding spousal protections let the community spouse keep up to roughly $157,920 in 2025 [1] [2]. Older materials and some guides still list the historic $2,000/$3,000 limits for some Medicaid categories, and reporting across practitioner sites varies on whether the new higher limits apply uniformly to institutional Medicaid and HCBS waivers [3] [1] [4].
1. What changed and where the numbers come from — a quick chronology
Michigan’s long-term‑care asset ceiling that had been commonly cited as $2,000 for individuals (and $3,000 for couples) was revised in state guidance and legal/practice summaries; several legal and planning organizations report an effective countable‑asset allowance of about $9,660 for an individual for nursing‑home Medicaid and MI Choice waiver eligibility [1] [5]. AgeWays and elder‑law commentary frame this as a substantial increase from the decades‑old $2,000 limit, explicitly tying it to improved access for MI Choice and PACE applicants [4] [6].
2. Nursing home eligibility vs HCBS waivers — similar tests, different operational rules
Multiple sources indicate the same asset‑eligibility regime applies to Medicaid that pays for nursing‑facility care and to waiver programs that provide nursing‑facility‑level services in the community (MI Choice requires a nursing‑facility level of care and uses the same financial rules in practice) — meaning the $9k+ countable‑asset figure is used in both settings in recent materials [7] [8] [1]. However, guidance notes procedural differences: nursing homes commonly use a “spend down” and facility admission processes, and some “medically needy” pathways keep separate low numeric ceilings in certain contexts [9] [1].
3. Where confusion persists — older webpages and mixed reporting
A wide swath of public‑facing sites still show the old $2,000 individual / $3,000 couple limits or present different figures for community Medicaid versus institutional/waiver Medicaid, creating conflicting impressions for applicants and caregivers [3] [10] [11]. Practitioners’ handbook excerpts and elder‑law firms explicitly note an effective $9,660 asset test for nursing‑home and MI Choice eligibility as of early 2025, but consumer guides may lag in updates [1] [12].
4. Spousal protections and household treatment of assets
Michigan applies spousal impoverishment rules: when one spouse applies for nursing‑home or waiver benefits, the non‑applicant (community) spouse may retain a Community Spouse Resource Allowance (CSRA). Sources cite the community spouse keeping up to roughly $157,920 in 2025 (and statutory share rules that protect 50% of couple resources up to that cap) — this is a separate calculation from the single‑person countable‑asset test [9] [2].
5. Important program differences that affect eligibility in practice
Some programs or pathways remain program‑specific: the “medically needy” pathway and facility‑specific spend‑down rules can impose different income treatment for institutional admission, and MI Choice/HCBS enrollment requires a nursing‑facility level‑of‑care determination (LOCD) even when financial rules mirror nursing‑home Medicaid [9] [8]. Michigan also enforces the 60‑month lookback and transfer‑penalty rules for both nursing‑home and HCBS waiver applicants, which affects asset planning and timelines [9] [10] [11].
6. Practical takeaway for applicants and families
If you or a family member need nursing‑facility‑level services in 2025–26, use recent legal/practice sources and MDHHS waiver pages: countable asset thresholds that practitioners cite are in the ~$9k–$9,660 range for single applicants for nursing‑home/MI Choice eligibility, not the historical $2,000 figure — but public guidance still varies and eligibility hinges on both medical NFLOC and the snapshot/“snapshot date” asset calculation [1] [7] [12]. Also factor in spousal allowances and the 60‑month lookback before making any transfers [2] [9].
Limitations and disagreements in reporting: official MDHHS web pages describe program rules and the MI Choice waiver but do not present a single, plainly labeled 2026 dollar cap in the excerpts provided here; much of the numerical reporting comes from legal handbooks and elder‑law sites that document an effective $9,660 figure [7] [1]. Available sources do not mention a consolidated MDHHS 2026 table in these search results that reconciles every public guide; consult MDHHS waiver pages and a qualified elder‑law attorney or certified Medicaid planner to confirm case‑specific application of limits [7] [1].